The State Services Commissioner is set to keep his job, despite the Prime Minister agreeing that he bungled Roger Sutton's resignation.

John Key says Iain Rennie appeared to be supporting the Canterbury Earthquake Recovery boss when Mr Sutton resigned over sexual harassment allegations.

"He's made a complete botch up of this particular press conference with the outgoing chief executive because he's allowed a perception to be created which is the wrong perception, and I think he deeply and utterly regrets that."

John Key is also defending Department of Prime Minister and Cabinet boss Andrew Kibblewhite, who also attended the press conference.